Chevron Corp. has agreed to promote minority stakes in two of the most important oilfields in america, Alaska’s Kuparuk and Prudhoe Bay, to co-venturer ConocoPhillips for about $300 million.
“When the transaction closes, ConocoPhillips Alaska’s working curiosity will improve roughly 5 % to a variety of 94-99 % within the Kuparuk River Unit, inclusive of satellite tv for pc fields, and can improve 0.4 % to roughly 36.5 % within the Prudhoe Bay Unit”, the Alaska arm of Houston, Texas-based ConocoPhillips mentioned in a press release. “The transaction is anticipated so as to add an estimated 5,000 internet barrels of oil equal per day to the corporate’s portfolio going ahead”.
ConocoPhillips is the operator of the Kuparuk River Unit and the 4 Kuparuk satellite tv for pc fields, which collectively type the Larger Kuparuk Space. The world contributed 66 million barrels of oil equal a day (MMboed) internet to ConocoPhillips’ manufacturing in 2022, of which 47 MMboed got here from the Kuparuk River Unit, in response to a truth sheet printed by the corporate Could 2023.
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Moreover Chevron, the opposite associate within the Larger Kuparuk Space is Exxon Mobil Corp. Earlier than the sale to ConocoPhillips, anticipated to shut by the tip of 2024, Chevron holds 4.9 % stakes within the Kuparuk River Unit and the Kuparuk satellites, based mostly on the 2023 truth sheet. ExxonMobil owns 0.6 % within the Kuparuk River Unit and 0.2 to five.8 % within the Kuparuk satellites.
Within the Larger Prudhoe Space, which encompasses the Prudhoe Bay discipline, the Prudhoe Bay satellite tv for pc fields and the Larger Level McIntyre Space fields, ConocoPhillips will turn into the bulk proprietor after the completion of the transaction with Chevron. ConocoPhillips would overtake ExxonMobil (36.4 %), based mostly on the 2023 info from ConocoPhillips. Because it stands, Chevron has a 1.1 %. Operator Hilcorp owns 26.4 %.
Larger Prudhoe accounted for 90 MMboed of ConocoPhillips’ internet output in 2022, 70 MMboed of which got here from Prudhoe Bay.
“This transaction as soon as once more demonstrates our funding within the state”, ConocoPhillips Alaska president Erec Isaacson mentioned of the settlement with Chevron. “Within the first half of 2024, our investments in Alaska tasks have exceeded $1.4 billion, underscoring our sustained dedication to Alaska for greater than 50 years”.
Just lately ConocoPhillips delivered a single manufacturing module to drillsite 3T of the Nuna mission within the Kuparuk River Unit. “That is the primary sea-lifted manufacturing module fabricated in Alaska for the corporate in additional than 20 years”, it mentioned in a separate assertion.
“Nuna is projected to spice up Kuparuk’s manufacturing within the coming years, reaching a peak charge of 20,000 internet barrels of oil equal per day”, ConocoPhillips added.
3T is Kuparuk’s forty ninth drillsite. It’ll have 29 improvement wells tied again to present services underneath the Nuna mission.
Isaacson mentioned, “Kuparuk has performed a significant position in our firm’s success, contributing important manufacturing for greater than 40 years”.
“It is outstanding to witness new developments just like the Nuna mission showcasing that this asset stays sturdy and continues to offer appreciable worth to our North Slope operations”, Isaacson added.
To contact the creator, e mail jov.onsat@rigzone.com
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